Investing in domestic oil and gas exploration and production can be a financially lucrative experience for qualified individuals and entities looking to diversify outside of conventional investment environments.
Drilling indicates the whole complex of operations necessary to construct oil wells by applying excavation techniques.
Intangible costs cover over 70% of total drilling costs and these are subject to huge tax benefits.
The amount of tangible and intangible drilling costs allocated to investors is based upon each drilling program. In some programs the investor may receive 100% of the intangible drilling costs and no tangible costs. In other programs the investor may receive 80-90% of the IDC’s and an allocation of the tangible drilling costs.
Partners have the option of also investing in just certain upstream or downstream sub-projects. These plans usually prepare investors for much bigger projects and help them to understand the basics of Oil and Gas sector.